CEAT internet revenue declines 61 computer in June quarter

Tyre maker CEAT on Wednesday reported a 61 per cent decline in its consolidated internet revenue at Rs 9 crore for the June quarter as excessive uncooked materials costs impacted enterprise.

The Mumbai-headquartered firm had posted a internet revenue of Rs 23 crore within the corresponding interval of final yr.

Revenue from operations, nevertheless, rose to Rs 2,818 crore within the first quarter as towards Rs 1,906 crore within the year-ago interval, the corporate stated in a regulatory submitting.

“We witnessed a strong topline growth during the quarter, aided by robust momentum in OEM and replacement segments. We continued to ramp up our capacities as demand picked up across categories. However, the continued spike in commodity prices has impacted gross margins, which was partially offset by price adjustments over the last quarter,” CEAT Ltd MD Anant Goenka stated.

Elaborating additional, CEAT CFO Kumar Subbiah famous that the corporate continued to maintain tight management on money flows and prices throughout the quarter.

“Despite a capex of Rs 250 crore, we have maintained our net debt level close to the previous quarter. Raw material costs moved up during this period, impacting our margins adversely,” he added.

However, there was some correction within the commodity costs just lately and if the pattern continues, it’s going to bear a constructive impression on the enterprise, Subbiah acknowledged.